500 Rupees banknotes signed by Duvvuri Subbarao in 2014

Nilaish
Life Member - IBNS-IBCC

"There are few notes denominated 500 Rupees are issued by RBI in 2014 which are signed by D. Subbarao, is a very interesting observation. However, it is said by RBI that process of changing signatures on notes of the new Governor is a tedious process."  

The Hindustan Times correspondent reported that (HT: 4 March 2014), "Take Note: RBI goofs up, as invalid notes in circulation".. It is found that some 500 Rupees notes of 2014 carry signature of D. Subbarao, who was previous Governor of RBI in 2013. New Governor, Raghuram Rajan joined the office in the same year. I came across an example and thus, collected it. It is presently sold in collector's market for Rs. 750-1000. An example can be seen below from my collection: 

2014: 500 Rupees, signed by Duvvuri Subbarao having serial number 3KN 417376 with inset E.

The HT correspondent reported that, "In an embarrassing goof-up, the Reserve Bank of India (RBI) has issued currency notes in 2014 carrying the signature of its former governor D. Subbarao, who retired last year. HT could not ascertain the exact denomination and total value of these flawed currency notes but sources said they are high denomination notes". 

Commenting on the issue, RBI explained in an email: “Currency note production is a manufacturing process. Making changes in the process takes time... Changing the governor’s signature on the banknotes is one such process. To complete the process in all the banknote presses for all denominations of banknotes is a programme which is underway and is expected to be completed in due course.”

It is also found that these notes were only printed at Dewas press (Bharatiya Reserve Bank Note Mudran Ltd), Madhya Pradesh (Moneycontrol.com 2014). The government owned presses are at Nasik and Dewas. The other two presses are at Mysore and Salboni. This would mean that these notes shall be replaced by RBI and the process will incur extra cost. In another press release RBI said, "The explanation comes amid reports that new Rs 1,000 and Rs 500 notes bearing signature of D. Subbarao, who has demited office in September 2013, are being rolled out from RBI printing presses. (millenium post 2014)" It is a remark that still the notes printed at Dewas press carry this mistake! I request collectors and Notaphilist to report any other prefix, other than 3KN if found. It will be easier to locate the cut off point of these mule notes. It will be updated and noted in this blog by acknowledging him/her. However, nothing to worry these notes are legal tender as said by RBI.

Copyright 2014 by Nilaish, Esq.

Presidency Banknotes: A great challenge for collectors!

Nilaish
Life Member - IBNS-IBCC


"It is surprising that commonly collectors cherish for Portrait Notes of Kings and Queens... which were issued after regulation of 1861 in India. It is a challenge for any collector, to possess any example prior to 1861!" 

India has a vast history of paper money. It dates back to 1770 A.D. when Bank of Hindostan was first founded and issued paper money in India. India was divided into three Presidencies viz; Bengal Presidency, Bombay Presidency and Madras Presidency.

East India Company was ruling these three presidencies and Governor General in Council was responsible for rules and regulations in provinces. India was under East India Company Rule till 1858, when the transfer of power happened to the British Crown, Queen Victoria.

Bagachi (1997) and DasGupta (1927) recorded that Indian Banking was regulated time and again by East India Company owned banks; Bank of Bengal (1809-1922), Bank of Bombay (1840-1922) and Bank of Madras (1843-1922). The charter of Bank of Bengal was passed by Lord Gilbert Minto in 1809. As per record, Bank of Bengal is the oldest government body owned bank of India. Similarly, in Bombay Presidency; Bank of Bombay was established in 1840 through a charter. In 1843, William Bentick, Governor General founded Bank of Madras which was earlier Madras Government Bank. These three banks issued currency notes in the provinces and circulation was limited to only Company Officers, Wealthy Merchants and Treasury. A substantial collections of its banknotes can be seen in Victoria Memorial at Kolkata. I had visited the museum after reading the book: The evolution of State Bank of India, Vol. 1 by Amiya Bagachi which was published by Oxford University Press. In this book a pictorial representation of its collection is shown in black and white. A very good collection of notes from Bank of Hindostan, Bank of Bengal, Bank of Bombay and Bank of Madras is archived.

Some examples of its currency notes in my collection: 

Bank of Bengal, 250 Sicca Rupees, Dated 22nd October 1813, Signed by Accountant: Henry Tyler. This type is recognized as the earliest type of its banknote issued in India. 

Bank of Bombay, 10 Rupees, Dated 1st November 1860. 

Bank of Madras, 3000 Rupees, 184X, card. 

The Challenge:

To have any example of this era is a serendipity! It is seemingly blaten that 90% collectors keep themselves away from understanding its historic beauty! I would rather make a convincing comment by encouraging collectors who are really looking to collect these historic examples! 

As far it is known that a veteran collector of paper money in India will confirm its genuine appeal. The collectors who understand that buying examples of presidency notes is cumbersome...they are right!  They are getting extinct from collectors market very soon. Most of it remain in private collections, which will not be offered very soon. 

A genuine dealer seldom comes across any example in his life, which he can buy. Now here these bull investors hikes its price, which is again a lethal drawback. Future serious collector will go away from that profit motive price. Being a connoisseur of Indian Paper Money, I would make a fair appeal to serious collectors that please do collect as many examples as you can! It is time to realize that condition of a note is not every thing, as any serious collector tries for the highest grade possible to afford.